IDEX Reports Second Quarter EPS of 88 Cents and
Raises Full Year EPS Guidance to $3.50 – $3.55

July 22, 2014 04:05 PM Eastern Daylight Time

LAKE FOREST, Ill.--(BUSINESS WIRE)--IDEX Corporation (NYSE: IEX) today announced its financial results
for the three month period ended June 30, 2014.

Second Quarter 2014 Highlights

Orders increased 9 percent, 7 percent organically

Sales increased 5 percent, 4 percent organically

Operating margin of 20.5 percent was up 130 basis points from the
prior year

EPS of 88 cents was 16 percent higher than prior year EPS of 76 cents

Acquired Aegis Flow Technologies

Second Quarter 2014

Orders in the quarter of $551 million were up 9 percent (+7 percent
organic and +2 percent foreign currency translation) compared with the
prior year period and sales of $547 million were up 5 percent (+4
percent organic and +1 percent foreign currency translation) compared
with last year.

Second quarter 2014 gross margin of 44.1 percent was up 110 basis points
from the prior year period, while operating income of $112 million was
up 13 percent from the prior year. This resulted in an operating margin
of 20.5 percent, up 130 basis points from prior year operating margin,
primarily due to volume leverage and productivity.

Second quarter net income was $72 million, an increase of 15 percent
from the prior year period. Second quarter earnings per share were 88
cents, an increase of 12 cents, or 16 percent, from the prior year.
EBITDA of $131 million, which was a 10 percent increase from the prior
year, was 24 percent of sales and covered interest expense by over 12
times, while free cash flow of $80 million was over 110 percent of net
income.

The Company completed the repurchase of 602 thousand shares of common
stock for $46 million in the quarter. Year-to-date, the Company has
repurchased 1.2 million shares of common stock for $86 million.

“IDEX completed the first half of 2014 with another solid quarter and
good momentum for the second half of the year. We have a clear focus to
invest in organic growth, while achieving productivity gains. These
investments require a greater use of free cash flow, but provide a base
for long-term organic growth. The focus on various organic initiatives
and core product line strategies is yielding benefits and, as a result,
organic revenue growth has accelerated to 6 percent in the first-half of
2014.

We are focused on total shareholder return by increasing organic growth
and maintaining a disciplined approach to acquisitions, shareholder
dividends and share repurchases. In April, we successfully completed the
acquisition of Aegis Flow Technologies (“Aegis”), a leader in specialty
chemical processing valves. Aegis will operate in our Chemical, Food &
Process platform and expand our presence in the region around the Gulf
of Mexico, serving the chemical, petro-chemical, and chlor-alkali
industries. We continue to actively pursue multiple acquisition
opportunities in an increasingly active M&A environment. We also
continue to execute our share repurchase and shareholder dividend
programs, which we expect to remain unchanged in the second half of 2014.

Geographically, we see stability in North America and Europe, and
continued volatility in Asia. Additionally, we see sales growth in the
second half for the FMT and HST segments improving over the first half
of the year. Based on these combined factors, we now expect to deliver
full-year 2014 organic growth of 5 to 6 percent with operating margins
greater than 20 percent. We project third quarter EPS in the range of 83
to 85 cents, and we are increasing our full year 2014 EPS guidance to
$3.50 to $3.55.”

Andrew K. SilvernailChairman and Chief Executive Officer

Second Quarter 2014 Business Highlights

Fluid & Metering Technologies

Sales in the second quarter of $226 million reflected a slight
increase compared to the second quarter of 2013 (-2 percent organic,
+1 percent acquisition and +1 percent foreign currency translation).

Operating margin of 24.6 percent represented a 30 basis point decrease
compared with the second quarter of 2013 primarily due to acquisition
related charges.

Health & Science Technologies

Sales in the second quarter of $186 million reflected a 3 percent
increase compared to the second quarter of 2013 (+1 percent organic
and +2 percent foreign currency translation).

Operating margin of 19.5 percent represented a 40 basis point increase
compared with the second quarter of 2013 primarily due to higher
volume and productivity initiatives.

Fire & Safety/Diversified Products

Sales in the second quarter of $136 million reflected a 19 percent
increase compared to the second quarter of 2013 (+17 percent organic
and +2 percent foreign currency translation).

Operating margin of 26.4 percent represented a 570 basis point
increase compared with the second quarter of 2013 primarily due to
volume leverage and productivity initiatives as well as a prior year
charge associated with a facility disposal in 2013.

EBITDA means earnings before interest, income taxes, depreciation and
amortization, while free cash flow means cash flow from operating
activities less capital expenditures plus the excess tax benefit from
stock-based compensation. Management uses these non-GAAP financial
measures as internal operating metrics and for enterprise valuation
purposes. Management believes these measures are useful as analytical
indicators of leverage capacity and debt servicing ability, and uses
them to measure financial performance as well as for planning purposes.
However, they should not be considered as alternatives to net income,
cash flow from operating activities or any other items calculated in
accordance with U.S. GAAP, or as an indicator of operating performance.
The definitions of EBITDA and free cash flow used here may differ from
those used by other companies.

EBITDA and Free Cash Flow Bridge (dollars in millions)

For the Quarter Ended

June 30,

March 31,

2014

2013

Change

2014

Change

Income before Taxes

$

101.5

$

88.4

15

%

$

104.2

(3

%)

Depreciation and Amortization

19.4

20.1

(3

%)

19.3

1

%

Interest Expense

10.4

10.6

(2

%)

10.5

(1

%)

EBITDA

$

131.3

$

119.1

10

%

$

134.0

(2

%)

Cash Flow from Operating Activities

$

92.0

$

109.3

(16

%)

$

74.2

24

%

Capital Expenditures

(12.5

)

(8.2

)

52

%

(10.8

)

16

%

Excess Tax Benefit from Stock-Based Compensation

0.8

2.3

(65

%)

2.9

(72

%)

Free Cash Flow

$

80.3

$

103.4

(22

%)

$

66.3

21

%

Conference Call to be Broadcast over the
Internet

IDEX will broadcast its second quarter earnings conference call over the
Internet on Wednesday, July 23, 2014 at 9:30 a.m. CT. Chairman and Chief
Executive Officer Andy Silvernail and Senior Vice President and Chief
Financial Officer Heath Mitts will discuss the Company’s recent
financial performance and respond to questions from the financial
analyst community. IDEX invites interested investors to listen to the
call and view the accompanying slide presentation, which will be carried
live on its website at www.idexcorp.com.
Those who wish to participate should log on several minutes before the
discussion begins. After clicking on the presentation icon, investors
should follow the instructions to ensure their systems are set up to
hear the event and view the presentation slides, or download the correct
applications at no charge. Investors will also be able to hear a replay
of the call by dialing 877.660.6853 (or 201.612.7415 for international
participants) using the ID # 13583593.

Forward-Looking Statements

This news release contains forward-looking statements within the meaning
of Section 27A of the Securities Act of 1933, as amended, and Section
21E of the Exchange Act of 1934, as amended. These statements may relate
to, among other things, capital expenditures, cost reductions, cash
flow, and operating improvements and are indicated by words or phrases
such as “anticipate,” “estimate,” “plans,” “expects,” “projects,”
“should,” “will,” “management believes,” “the company believes,” “the
company intends,” and similar words or phrases. These statements are
subject to inherent uncertainties and risks that could cause actual
results to differ materially from those anticipated at the date of this
news release. The risks and uncertainties include, but are not limited
to, the following: economic and political consequences resulting from
terrorist attacks and wars; levels of industrial activity and economic
conditions in the U.S. and other countries around the world; pricing
pressures and other competitive factors, and levels of capital spending
in certain industries – all of which could have a material impact on
order rates and IDEX’s results, particularly in light of the low levels
of order backlogs it typically maintains; its ability to make
acquisitions and to integrate and operate acquired businesses on a
profitable basis; the relationship of the U.S. dollar to other
currencies and its impact on pricing and cost competitiveness; political
and economic conditions in foreign countries in which the company
operates; interest rates; capacity utilization and the effect this has
on costs; labor markets; market conditions and material costs; and
developments with respect to contingencies, such as litigation and
environmental matters. The forward-looking statements included here are
only made as of the date of this news release, and management undertakes
no obligation to publicly update them to reflect subsequent events or
circumstances. Investors are cautioned not to rely unduly on
forward-looking statements when evaluating the information presented
here.

About IDEX

IDEX Corporation is an applied solutions company specializing in fluid
and metering technologies, health and science technologies, and fire,
safety and other diversified products built to its customers’ exacting
specifications. Its products are sold in niche markets to a wide range
of industries throughout the world. IDEX shares are traded on the New
York Stock Exchange and Chicago Stock Exchange under the symbol “IEX”.

For further information on IDEX Corporation and its business units,
visit the company’s website at www.idexcorp.com.

(Tables follow)

IDEX CORPORATION

Condensed Statements of Consolidated Operations

(in thousands except per share amounts)

(unaudited)

Three Months Ended

Six Months Ended

June 30,

June 30,

2014

2013

2014

2013

Net sales

$

546,693

$

518,445

$

1,090,689

$

1,012,893

Cost of sales

305,561

295,596

605,137

578,047

Gross profit

241,132

222,849

485,552

434,846

Selling, general and administrative expenses

129,044

123,290

259,629

240,575

Operating income

112,088

99,559

225,923

194,271

Other (income) expense - net

137

573

(707

)

(706

)

Interest expense

10,405

10,597

20,862

21,154

Income before income taxes

101,546

88,389

205,768

173,823

Provision for income taxes

29,769

25,828

59,443

49,962

Net income

$

71,777

$

62,561

$

146,325

$

123,861

Earnings per Common Share:

Basic earnings per common share (a)

$

0.89

$

0.76

$

1.81

$

1.50

Diluted earnings per common share (a)

$

0.88

$

0.76

$

1.79

$

1.49

Share Data:

Basic weighted average common shares outstanding

80,106

81,829

80,317

82,013

Diluted weighted average common shares outstanding

81,149

82,734

81,362

82,943

Condensed Consolidated Balance Sheets

(in thousands)

(unaudited)

June 30,

December 31,

2014

2013

Assets

Current assets

Cash and cash equivalents

$

485,335

$

439,629

Receivables - net

272,151

253,226

Inventories

254,182

230,967

Other current assets

69,858

67,131

Total current assets

1,081,526

990,953

Property, plant and equipment - net

223,395

213,488

Goodwill and intangible assets

1,664,028

1,660,683

Other noncurrent assets

22,048

22,453

Total assets

$

2,990,997

$

2,887,577

Liabilities and shareholders' equity

Current liabilities

Trade accounts payable

$

146,827

$

133,312

Accrued expenses

142,493

150,751

Short-term borrowings

111,539

1,871

Dividends payable

22,516

18,675

Total current liabilities

423,375

304,609

Long-term borrowings

705,326

772,005

Other noncurrent liabilities

237,409

237,974

Total liabilities

1,366,110

1,314,588

Shareholders' equity

1,624,887

1,572,989

Total liabilities and shareholders' equity

$

2,990,997

$

2,887,577

IDEX CORPORATION

Company and Business Group Financial Information

(dollars in thousands)

(unaudited)

Three Months Ended

Six Months Ended

June 30, (b)

June 30, (b)

2014

2013

2014

2013

Fluid & Metering Technologies

Net sales

$

226,100

$

225,488

$

449,461

$

437,243

Operating income (c)

55,623

56,115

112,030

104,194

Operating margin

24.6

%

24.9

%

24.9

%

23.8

%

Depreciation and amortization

$

6,746

$

7,012

$

13,298

$

13,972

Capital expenditures

3,554

2,507

7,563

5,283

Health & Science Technologies

Net sales

$

185,672

$

180,867

$

372,047

$

353,735

Operating income (c)

36,137

34,522

72,366

66,789

Operating margin

19.5

%

19.1

%

19.5

%

18.9

%

Depreciation and amortization

$

10,690

$

10,947

$

21,399

$

21,739

Capital expenditures

5,318

4,168

8,827

6,954

Fire & Safety/Diversified Products

Net sales

$

136,182

$

114,236

$

273,466

$

225,749

Operating income (c)

35,985

23,676

75,633

51,908

Operating margin

26.4

%

20.7

%

27.7

%

23.0

%

Depreciation and amortization

$

1,672

$

1,741

$

3,352

$

3,449

Capital expenditures

2,692

741

4,499

2,221

Company

Net sales

$

546,693

$

518,445

$

1,090,689

$

1,012,893

Operating income

112,088

99,559

225,923

194,271

Operating margin

20.5

%

19.2

%

20.7

%

19.2

%

Depreciation and amortization (d)

$

19,416

$

20,077

$

38,673

$

39,916

Capital expenditures

12,490

8,197

23,299

15,822

(a)

Calculated by applying the two-class method of allocating
earnings to common stock and participating securities as required by
ASC 260, Earnings Per Share.

(b)

Three and six month data includes acquisitions of Aegis (April
2014) in the Fluid & Metering Technologies segment and FTL (March
2013) in the Health & Science Technologies segment from the date of
acquisition.